The Maritime and Dockworkers Union (MDU) and the Local Unions of Ghana Ports and Harbours Authority (GPHA) are up in arms with Meridian Port Services, MPS, as they demand immediate implementation a 20% Container deal signed on November, 12, 2019.

In their estimation, failure on the part of MPS to honour this deal could lead to huge revenue losses which would translate into massive job losses and inadvertently collapse the once vibrant Ghana Ports and Harbours Authority, GPHA.

“The campaign we embarked on drew attention to the fact that the MPS Terminal 3 agreement would eventually collapse GPHA and the huge revenue losses would translate into massive job losses.

“The Report of the Inter-Ministerial Committee set up by the NPP government provides adequate information to confirm that the MPS Terminal 3 agreement would create financial problems for GPHA which would translate into job losses estimated by GPHA management to be about 1400,” a joint statement from MDU and GPHA released today said.

In their bid to curtail the looming challenge in coming months, the staff of both unions, are calling on the MPS to act on the deal as soon as possible to mitigate the disturbing reality staring them in the face.

Read full statement below

PRESS STATEMENT

MARITIME AND DOCKWORKERS UNION AND GPHA UNIONS SEEK IMMEDIATE AND UNCONDITIONAL IMPLEMENTATION OF 20% CONTAINER AGREEMENT FOR GPHA

The Maritime and Dockworkers Union(MDU) and the Local Unions of Ghana Ports and Harbours Authority(GPHA) have decided to embark on actions to support their demand for immediate and unconditional implementation of the decision taken by the shareholders of the Meridian Port Services(MPS) in Dubai on the 12th of November 2019 that GPHA should be granted the right to handle 20% of the Container business of the Tema Port.

We wish to recall that the Trades Union Congress, Ghana , the Maritime and Dockworkers Union(MDU), the Local Unions of GPHA and the workers of GPHA had been involved in a consistent campaign against the agreement of Meridian Port Services(MPS) Terminal 3 which was signed in 2015 and grants many generous incentives to MPS including the exclusive right of MPS to handle almost all container cargo that call at the Port of Tema.

The campaign we embarked on drew attention to the fact that the MPS Terminal 3 agreement would eventually collapse GPHA and the huge revenue losses would translate into massive job losses. The Report of the Inter-Ministerial Committee set up by the NPP government provides adequate information to confirm that the MPS Terminal 3 agreement would create financial problems for GPHA which would translate into job losses estimated by GPHA management to be about 1400. The Inter-Ministerial report stated that the agreement was not in the interest of GPHA and Ghana.

Our campaign led to the decision by the government of Ghana to assure TUC, MDU, the Local Unions of GPHA and the workers of GPHA that there would be a tripartite approach to the negotiations on the review of the MPS Terminal 3 agreement.

Despite some difficulties, we had the opportunity to participate in the committee that was set up to discuss the concerns of GPHA and the unions. On the 12th of November 2019, the shareholders of MPS took a decision in Dubai to grant GPHA the right to handle 20% of the container business of the Tema Port.

The MDU had requested for the reconvening of the tripartite committee to be briefed on the decisions taken in the Dubai meeting since March 2020 with no positive response. Meanwhile, MPS is operating as if there had not been any agreement on the granting of 20% container business to GPHA and GPHA continues to lose revenues on a daily basis. The effects of the dwindling revenues of GPHA manifested in the difficulties that confronted GPHA in the 2020 Salary negotiations for workers.

The delay in the implementation of the “ Dubai Agreement ” to grant 20% container business to GPHA has resulted from the stance of MPS to implement the “ Dubai Agreement” to cover a period of 4 years where the 20% container business of GPHA would run for the first two years and reduced to 15% in the third year and 10% in the fourth year. We hold the strong view that the conditional implementation of the 20% container business for GPHA would only postpone the problems of GPHA but would not solve them.

Our expectation is that the discussions in Ghana would concentrate on how to operationalise the “Dubai Agreement” and not to change it. Moreover, we expected GPHA and MPS to involve the unions in the discussions on how to operationalise the implementation of the “Dubai Agreement” in the spirit of the tripartite approach proposed by H.E. the President of the Republic of Ghana.

When GPHA as the Landlord and Regulator of the port started the implementation of the “Dubai Agreement”, MPS used slabs to block GPHA from having access to Terminal 1 and 2 on 10th June 2020. We regard the action of MPS as an affront to the authority of GPHA and gross disrespect for the laws of Ghana.

In addition to the implementation challenges of the “Dubai Agreement”, through some strange arrangement, MPS has succeeded in taking over the Reefer Container business of GPHA which is not part of the Terminal 3 Agreement. GPHA is losing huge revenues from the takeover of the Reefer Container business of GPHA. The huge revenue losses of GPHA would prevent GPHA from playing its many roles including but not limited to providing jobs for many Ghanaians, providing financial support to sustain PSC Tema Shipyard, providing vessels to Stevedore companies to sustain the stevedore business, creating training opportunities for National Service Personnel and many young people among others.

We are seeking the support of H.E. the President of the Republic of Ghana to ensure the immediate and unconditional implementation of the “Dubai Agreement” which granted 20% Container business to GPHA in the interest of the survival of GPHA. We seek the President’s support in reversing the decision that has denied GPHA the right to operate the reefer container business especially when GPHA has made substantial investment in building a Reefer Container Terminal.

We would work hard to ensure that the operations of MPS Terminal 3 does not kill GPHA.

Daniel Owusu-Koranteng
General Secretary of Maritime and Dockworkers Union of TUC, Ghana.
16th June 2020